This week will be quiet on the economic data front, with US Federal Reserve officials on their traditional vacation before their last monetary policy meeting in 2022. Investors will be watching Friday’s U.S. producer price inflation data for clues on how hawkish the central bank’s stance may be after 4 consecutive sharp rate hikes to combat the highest inflation in decades. OPEC+ ministers are due to decide on production targets, while the Reserve Bank of Australia and the Bank of Canada are due to make interest rate decisions that will be closely watched. Here’s what you need to know at the start of the week.

1. US data

On Friday, the US will release CPI data for November. ًThe core CPI is expected to rise at an annualized rate of 7.2%, slowing slightly after rising 8% in the previous month. And the core CPI, which excludes food and energy costs, is also expected to decline.

Fed chief Jerome Powell said last week that it might be time to slow rate hikes, raising hopes that the central bank was nearing the end of its tightening cycle, but Friday’s employment report, which showed that jobs remained strong last month and average hourly earnings rose, confused the outlook.

The U.S. will release CPI data this week ahead of the Fed’s final meeting of the year on Dec. 13-14.

In addition to CPI data, this week’s economic calendar will also include Monday’s ISM services PMI data and the University of Michigan’s consumer sentiment data and Thursday’s weekly report on initial jobless claims.

2. OPEC meeting

Representatives of OPEC+, which includes the Organization of the Petroleum Exporting Countries and its allies including Russia, met on Sunday to discuss production targets after the G7 countries agreed on a price cap on Russian crude.

The G7 countries and Australia agreed on Friday to cap the price of Russian crude at $60 a barrel by sea, keeping Russian oil flowing to global markets.

Moscow has said it will not sell its oil under the restrictions and will consider retaliatory measures.

OPEC+ angered the U.S. and other Western nations in October when it agreed to cut production by 2 million barrels a day from November through the end of 2023. Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia.

OPEC+ said it cut production due to weakening economic outlook. Oil prices have declined since October due to the closure of COVID-19 in China, slowing global growth and rising interest rates.

3. Equity Market

Last week, the S&P 500, Nasdaq and Dow Jones indices posted their second consecutive weekly gains; with the Nasdaq up 2%. The S&P added 1% for the week, while the Dow rose 0.2%. The market pulled back from lows on Friday after a strong November jobs report raised doubts about the Fed’s ability to slow the pace of rate hikes.

Investors are looking for signs of weakness in the labor market, especially wages, as a precursor to a more rapid cooling of inflation, which would allow the Fed to slow, and eventually end, the current rate hike cycle.

The stock market rallied early in the week following Powell’s comments about reducing the pace of interest rate hikes as early as December.

However, although Federal Reserve Bank of Chicago Governor Charles Evans made comments on Friday that the Fed would likely achieve a slightly higher peak funds rate, he did say he would reduce the pace of rate hikes following the recent 75 basis point increase.

4. Central bank decisions

The market expects the Reserve Bank of Australia to keep the rate unchanged at 2.85% at its upcoming meeting on Tuesday after a sharp slowdown in inflation in October, but economists forecast another quarter basis point hike before officials pause the current rate hike cycle.

That won’t necessarily interrupt the Australian dollar’s recent rally, which has been driven more by hopes of a reopening of China’s economy and a weaker U.S. dollar than by RBA action.

Meanwhile, the market and economists are divided on whether the Bank of Canada will raise rates by 25 or 50 basis points at Wednesday’s meeting.

The Bank has raised rates by 350 basis points since March, one of the steepest tightening cycles in history.

5. Eurozone

European Central Bank Governor Christine Lagarde is scheduled to speak twice this week before the ECB’s vacation period before its final monetary policy meeting of the year on Dec. 15.

The market is leaning toward a 50 basis point rate hike at the upcoming ECB meeting after data last week showed that eurozone inflation fell much more than expected in November. With inflation well above the 2% target, the ECB has been raising rates this year at the fastest pace in history and a rate hike remains likely in the coming months.

However, some officials have recently made the case for slowing the pace of rate hikes after several consecutive 75 basis point increases, arguing that inflation has finally peaked.